Nationally pending home sales are up and pending home sales is a very large indicator of the housing rebound. This is the kind of forward looking report we love to look at here!
As pending home sales climb in a particular area, it is a sign that area is recovering. It shows us more people wrote contracts than the month before. In many locations this marks the 2nd 3rd and 4th consecutive months of increased home sale activity. As these homes get sold and removed from the market it makes way for a reduced inventory. In today’s market, it makes way for the shadow inventory that everyone is talking about (the Bank Owned or REO (Real Estate Owned) property that will soon be hitting the market). All in all this remains great news as the glut of inventory needs to be reduced in order for housing prices to start the rebound. As the rebound unfolds, the investor looking for capitol growth is better positioned for such Growth.
The Pending Home sales increased better than 5% nationally. As I always say, location describes real estate and not all locations are equal. Three out of the four regions saw increases over the prior month. This report from Bloomberg shows us that gains of 10.3 percent come from the South,. 3.1 percent come from the West, while 3 percent comes from the Midwest. Pending Homes sale purchases dropped 3.2 percent from the Northeast. You will want to do deeper diligence to see what areas within each of these respective corners of the country grew the most and continue diligence into other aspects such as job growth and under valued real estate. These are, however, great indicators that continues to be seen as the Housing Recovery continues to advance forward.
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